Volatility as an asset class
IBM (IBM) is up $8.09 to $294 in the premarket after the tech bell weather says Q4 was led by successful product launches in high end systems. Overall option implied volatility of 20 is near its 26-week average of 20.
Intuitive Surgical (ISRG) is up $41.69 to $560.18 in the premarket after the company says Q4 da Vinci surgical procedures grew 25%. February call option implied volatility is at 40, April is at 33; compared to its 26-week average 30.
Google (GOOG) is up $34.12 to $737 in the premarket on Q4 results highlighting healthy performances by its search and display businesses. February call option implied volatility is at 37, compared to its 26-week average of 28.
CBOE S&P 500 2% OTM BuyWrite Index (BXY) closed at 1215.80, above its 10-day moving average of 1208.56 and its 50-day moving average of 1177.31. www.cboe.com/BXY
CBOE Volatility Index (VIX) closed at 12.43, below its 10-day moving average of 13.32, and 50-day its moving average of 15.96.
Calls with increasing volume at CBOE yesterday included;
PPHM 7/20/2013 5 25K contracts
APC 5/18/2013 90 13K
DELL 2/16/2013 14 12K
FB 1/25/2013 31 9K
SPY 2/16/2013 150 6K
SPDR S&P 500 ETF Trust (SPY) is mixed to lower in the premarket as earnings continue to come in from many companies, investors will be today’s report from Apple (AAPL) which is due out after the close.